Your question can be distilled down to the basic argument of
custom vs. production and free market capitalism.
Without getting into the points already raised, consider the
points of material volume discounts,tax breaks, government
subsidies,energy subsidies, decreased QC, mass marketing, etc
that production houses have over the small shop.
As for justification...Kevin doesn't have to justify anything. If
his prices are too high, then he won't make any sales. Since he
makes his living at making knives and swords, he obviously
intends to sell them. He is backlogged....he sells them at the
current advertized prices and there is increasing demand for
more.
I don't have a problem, or quibble with a price a custom maker
sets....if I want his product, I pay. If I don't want it, I don't.
Afterall, we are not communists.